The next time you make a purchase of a BMW X5, X6, and the soon-to-be-released X3, don’t act the least bit surprised when you find out that some of the parts that make up your beloved new SUV are made in Mexico.

According to Autonews, BMW is looking into making a sizable investment, somewhere around $1 billion, into Mexican suppliers to build a number of parts for the German manufacturer’s new line of sports utility vehicles. A number of reasons have been traced as to why BMW is close to deciding on tapping into a new market, foremost of which is the fact that labor rates are relatively cheaper compared to both the US and German markets. Another reason that can be attributed to this move is that, by producing these parts in Mexico, it becomes geographically near to the company’s production facility in South Carolina where the SUVs are being produced.

Add both of these factors to the fact that BMW is looking at lowering its expenses to about $5 billion in two years time and it becomes increasingly clear as to why the German manufacturer is close to infusing about $1 billion into Mexico. Sound move, if you ask us.

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Source: Auto News

What do you think?
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14 comments:

  (449) posted on 06.29.2011

Well, I guess its not boring at all since they are coming up with something new always.
And I think there are a lot of car that is line up for the future production of the car.

  (369) posted on 06.29.2011

IMO, the good thing about Mazda is everytime that they come up with a newer model. We could actually see a new features and specs from their car. And I really don’t get bored seeing their cars.

  (273) posted on 05.6.2011

That is definitely a high investment! BMW has exerted a lot of effort in producing high quality units. I absolutely commend on the hardwork that has being done here by the Marketing team of BMW.

  (447) posted on 05.6.2011

I hope BMW can able to maintain its high quality of service despite of pushing their investments that will totally ruin their reputation. They should also consider the cost of living of the Mexicans, how many percent will afford to buy their units? Or how stiff is the car competition on that area.

  (302) posted on 04.15.2011

I think that was good idea. The materials that they will be using is in Mexico, and I think it would be convenient for the manufacturer plus they will save a lot for fuel and other expenses!

  (507) posted on 04.1.2011

Well, if they think that they will be having a less cost labor in Mexico then goes ahead but be sure that the reliability and quality of the car will not be diminished just because of cost cutting. 

  (939) posted on 07.12.2010

if they do this (which is "bleh" imo), and they STILL raise prices each year, then well.... boo on them. lol

  (807) posted on 07.11.2010

The body-in-white monocoque without any other bodywork was 400 kilos, now 200 kilos, or two fat blokes, well done indeed.

  (807) posted on 07.11.2010

I just cannot equate Mexican made with quality. This will definitely have an effect on future BMW sales. Most consumers who are willing to spend some serious cash on a car will study up on this.

  (859) posted on 07.8.2010

I doubt that’s likely. BMW currently air-freights parts over from Germany to South Carolina. That has to be terribly expensive. This way they can save on parts cost and save a boat load on transportation costs while still enjoying the relatively inexpensive labor in South Carolina

  (518) posted on 07.8.2010

Sounds good to me. The Mexican-built Fords have been great. Plus, jobs that were never coming to America anyway can help us if they go to countries like Mexico. It will mean more tourism dollars and fewer illegal immigrants

  (1023) posted on 07.7.2010

what risk? dude BMW will never be at risk.. specially in marketing..

  (612) posted on 07.7.2010

i guess they can make the decisions yet if they will pursue the 1 billion investment. they really dont want to take the risk.

  (555) posted on 07.6.2010

I really don’t know how well the Mexican industry work. but I hope they will be better than china.

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